Zepto In Talks To Sell $300 Mn Worth Shares To Mutual Funds Ahead Of IPO

Trademark Dispute: Delhi HC Rules In Favour Of Zepto Parent

SUMMARY

Zepto is reportedly in talks with a host of top mutual fund houses to facilitate share sales worth $300 Mn ahead of its initial public offering (IPO)

The company’s CEO Aadit Palicha has met executives of top mutual funds including SBI Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund and others

This comes after the quick commerce major raised $300 Mn from HNIs in November last year

Quick commerce major Zepto is reportedly in talks with a host of top mutual fund houses to facilitate share sales worth $300 Mn ahead of its initial public offering (IPO).

Moneycontrol reported, citing sources close to the matter, the company’s CEO Aadit Palicha has met executives of top mutual funds including SBI Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund and others to warm them up to the idea of a pre-IPO round to the tune of $300 Mn later this year.

Inc42 has reached out to Zepto for a confirmation on the development. The story will be updated based on the response.

This comes after the quick commerce major raised $350 Mn from HNIs in November last year. In 2024, the company raised a total $1.3 Bn in funding, while outpacing Blinkit and Swiggy Instamart in terms of revenue.

Notably, Zepto is looking to increase the size of its IPO to $1 Bn from the previously planned $800 Mn and it is likely to file its draft IPO papers with market regulator SEBI by March-April.

Founded in 2021 by Palicha and Kaivalya Vohra, Zepto provides 10-minute deliveries of a wide range of products like groceries, packaged foods, ready-to-eat food, daily essentials and electronics.

The quick commerce sector in India has now heated up with the new entrants like BigBasket, Flipkart Minutes, Amazon, JioMart, among others. Not to mention the market leaders and Zepto competitors like Blinkit and Instamart are already expanding their darkstores exponentially.

To tackle the competition, Zepto has launched a slew of offerings lately, be it the Zepto Cafe or offering test drives on cars under 10 minutes.

It also turned into a marketplace model recently with setting up a new entity, Zepto Marketplace Private Limited.

Zepto’s operating revenue more than doubled to INR 4,454.52 Cr in the fiscal year 2023-24 (FY24) from INR 2,025.70 Cr in the previous fiscal year, driven by the rising popularity of quick commerce.

The company reported a 2% decline in its net loss to INR 1,248.64 Cr during the year under review from INR 1,271.84 Cr in FY23.